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SHL

Sonic Healthcare ASX:SHL Stock Report

Last Price

AU$30.58

Market Cap

AU$14.7b

7D

3.1%

1Y

-23.2%

Updated

02 Oct, 2022

Data

Company Financials +
SHL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends5/6

SHL Stock Overview

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients.

Sonic Healthcare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sonic Healthcare
Historical stock prices
Current Share PriceAU$30.58
52 Week HighAU$46.95
52 Week LowAU$29.37
Beta0.51
1 Month Change-9.01%
3 Month Change-8.36%
1 Year Change-23.22%
3 Year Change9.14%
5 Year Change46.88%
Change since IPO30,480.00%

Recent News & Updates

Sep 21
Is Sonic Healthcare (ASX:SHL) Using Too Much Debt?

Is Sonic Healthcare (ASX:SHL) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

SHLAU HealthcareAU Market
7D3.1%-1.0%-1.7%
1Y-23.2%-20.4%-10.8%

Return vs Industry: SHL underperformed the Australian Healthcare industry which returned -20.4% over the past year.

Return vs Market: SHL underperformed the Australian Market which returned -10.8% over the past year.

Price Volatility

Is SHL's price volatile compared to industry and market?
SHL volatility
SHL Average Weekly Movement4.1%
Healthcare Industry Average Movement5.3%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

Stable Share Price: SHL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SHL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193441,000Colin Goldschmidthttps://www.sonichealthcare.com

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It also offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services.

Sonic Healthcare Fundamentals Summary

How do Sonic Healthcare's earnings and revenue compare to its market cap?
SHL fundamental statistics
Market CapAU$14.69b
Earnings (TTM)AU$1.46b
Revenue (TTM)AU$9.34b

10.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHL income statement (TTM)
RevenueAU$9.34b
Cost of RevenueAU$5.61b
Gross ProfitAU$3.73b
Other ExpensesAU$2.27b
EarningsAU$1.46b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.04
Gross Margin39.89%
Net Profit Margin15.64%
Debt/Equity Ratio21.2%

How did SHL perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

33%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SHL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHL?

Other financial metrics that can be useful for relative valuation.

SHL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA7.1x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does SHL's PE Ratio compare to its peers?

SHL PE Ratio vs Peers
The above table shows the PE ratio for SHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.3x
HLS Healius
6.5x-17.2%AU$1.9b
IDX Integral Diagnostics
44.2x24.0%AU$645.1m
ACL Australian Clinical Labs
4x-45.1%AU$708.9m
CAJ Capitol Health
30.7x24.9%AU$329.0m
SHL Sonic Healthcare
10.1x-15.1%AU$14.7b

Price-To-Earnings vs Peers: SHL is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (21.3x).


Price to Earnings Ratio vs Industry

How does SHL's PE Ratio compare vs other companies in the Global Healthcare Industry?

Price-To-Earnings vs Industry: SHL is good value based on its Price-To-Earnings Ratio (10.1x) compared to the Global Healthcare industry average (17.1x)


Price to Earnings Ratio vs Fair Ratio

What is SHL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.1x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: SHL is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

What is the Fair Price of SHL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHL (A$30.58) is trading below our estimate of fair value (A$54.1)

Significantly Below Fair Value: SHL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Sonic Healthcare forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-15.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHL's earnings are forecast to decline over the next 3 years (-15.1% per year).

Earnings vs Market: SHL's earnings are forecast to decline over the next 3 years (-15.1% per year).

High Growth Earnings: SHL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHL's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: SHL's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHL's Return on Equity is forecast to be low in 3 years time (9.9%).


Discover growth companies

Past Performance

How has Sonic Healthcare performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SHL has high quality earnings.

Growing Profit Margin: SHL's current net profit margins (15.6%) are higher than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: SHL's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: SHL's earnings growth over the past year (11.1%) is below its 5-year average (29.8% per year).

Earnings vs Industry: SHL earnings growth over the past year (11.1%) exceeded the Healthcare industry -7.9%.


Return on Equity

High ROE: SHL's Return on Equity (20.4%) is considered high.


Discover strong past performing companies

Financial Health

How is Sonic Healthcare's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SHL's short term assets (A$2.3B) exceed its short term liabilities (A$2.1B).

Long Term Liabilities: SHL's short term assets (A$2.3B) do not cover its long term liabilities (A$3.0B).


Debt to Equity History and Analysis

Debt Level: SHL's net debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: SHL's debt to equity ratio has reduced from 73.1% to 21.2% over the past 5 years.

Debt Coverage: SHL's debt is well covered by operating cash flow (141.1%).

Interest Coverage: SHL's interest payments on its debt are well covered by EBIT (27.1x coverage).


Balance Sheet


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Dividend

What is Sonic Healthcare current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.27%

Current Dividend Yield

Dividend Yield vs Market

Sonic Healthcare Dividend Yield vs Market
How does Sonic Healthcare dividend yield compare to the market?
SegmentDividend Yield
Company (Sonic Healthcare)3.3%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.1%
Industry Average (Healthcare)2.9%
Analyst forecast in 3 Years (Sonic Healthcare)3.6%

Notable Dividend: SHL's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: SHL's dividend (3.27%) is low compared to the top 25% of dividend payers in the Australian market (7.16%).


Stability and Growth of Payments

Stable Dividend: SHL's dividends per share have been stable in the past 10 years.

Growing Dividend: SHL's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.7%), SHL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26%), SHL's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

25.8yrs

Average management tenure


CEO

Colin Goldschmidt (68 yo)

29.75yrs

Tenure

AU$7,685,255

Compensation

Dr. Colin Stephen Goldschmidt, M.B.B.Ch., F.R.C.P.A., F.A.I.C.D. serves as the Chief Executive Officer of Sonic Healthcare Limited since 1993 and has been its Managing Director since 1992. Dr. Goldschmidt...


CEO Compensation Analysis

Colin Goldschmidt's Compensation vs Sonic Healthcare Earnings
How has Colin Goldschmidt's remuneration changed compared to Sonic Healthcare's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022AU$8mAU$2m

AU$1b

Mar 31 2022n/an/a

AU$1b

Dec 31 2021n/an/a

AU$1b

Sep 30 2021n/an/a

AU$1b

Jun 30 2021AU$7mAU$2m

AU$1b

Mar 31 2021n/an/a

AU$1b

Dec 31 2020n/an/a

AU$951m

Sep 30 2020n/an/a

AU$739m

Jun 30 2020AU$4mAU$2m

AU$528m

Mar 31 2020n/an/a

AU$554m

Dec 31 2019n/an/a

AU$581m

Sep 30 2019n/an/a

AU$565m

Jun 30 2019AU$6mAU$2m

AU$550m

Mar 31 2019n/an/a

AU$510m

Dec 31 2018n/an/a

AU$470m

Sep 30 2018n/an/a

AU$473m

Jun 30 2018AU$5mAU$2m

AU$476m

Mar 31 2018n/an/a

AU$468m

Dec 31 2017n/an/a

AU$460m

Sep 30 2017n/an/a

AU$444m

Jun 30 2017AU$13mAU$2m

AU$428m

Mar 31 2017n/an/a

AU$444m

Dec 31 2016n/an/a

AU$460m

Sep 30 2016n/an/a

AU$456m

Jun 30 2016AU$6mAU$2m

AU$451m

Compensation vs Market: Colin's total compensation ($USD4.95M) is above average for companies of similar size in the Australian market ($USD2.94M).

Compensation vs Earnings: Colin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SHL's management team is seasoned and experienced (25.8 years average tenure).


Board Members

Experienced Board: SHL's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SHL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

ASX:SHL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
27 Sep 22SellAU$6,008,820Christopher WilksIndividual200,000AU$30.04
26 Sep 22BuyAU$37,903,514The Vanguard Group, Inc.Company1,029,456AU$37.12
26 Sep 22SellAU$9,936,351Colin GoldschmidtIndividual331,551AU$29.97
23 Sep 22BuyAU$59,437Kathryn SpargoIndividual2,000AU$29.72
23 Sep 22BuyAU$59,460Mark ComptonIndividual2,000AU$29.73
21 Sep 22BuyAU$77,171Suzanne CroweIndividual2,560AU$30.14
16 Sep 22SellAU$10,721,545The Vanguard Group, Inc.Company308,521AU$35.47
06 Sep 22BuyAU$0BlackRock, Inc.Company7,871,772AU$46.81
06 Sep 22SellAU$175,153BlackRock, Inc.Company12,614,243AU$46.71
20 Jul 22BuyAU$39,402,007State Street Global Advisors, Inc.Company2,313,327AU$46.71
20 Jul 22SellAU$161,438,103State Street Global Advisors, Inc.Company3,471,314AU$46.71
05 Nov 21BuyAU$595,103,226The Vanguard Group, Inc.Company13,573,943AU$43.98
02 Nov 21SellAU$239,374,204The Vanguard Group, Inc.Company5,588,025AU$43.25

Ownership Breakdown

What is the ownership structure of SHL?
Owner TypeNumber of SharesOwnership Percentage
Public Companies1,615,4720.3%
Individual Insiders3,537,3490.7%
Private Companies18,514,7983.9%
Institutions189,506,72339.5%
General Public267,162,88355.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 37.26% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.2%
State Street Global Advisors, Inc.
29,790,944A$911.0m20.99%0.03%
6.13%
BlackRock, Inc.
29,440,945A$900.3m-13.63%0.01%
4.95%
Veritas Asset Management LLP
23,796,454A$727.7m0%1.87%
4.8%
The Vanguard Group, Inc.
23,059,564A$705.2m0%0.01%
3.14%
Jardvan Pty Ltd.
15,109,474A$462.0m0%no data
1.5%
Norges Bank Investment Management
7,209,361A$220.5m0%0.02%
1.28%
Geode Capital Management, LLC
6,162,405A$188.4m0.94%0.02%
1.05%
AllianceBernstein L.P.
5,027,771A$153.7m-0.01%0.04%
0.78%
Argo Investments Limited
3,726,053A$113.9m0%2.07%
0.66%
Australian Foundation Investment Company Limited
3,159,672A$96.6m-14.69%1.35%
0.64%
Baillie Gifford & Co.
3,068,620A$93.8m0%0.03%
0.6%
Netwealth Investments Ltd.
2,870,276A$87.8m30.3%1.19%
0.57%
Guinness Asset Management Limited
2,718,668A$83.1m0%1.34%
0.56%
Dimensional Fund Advisors LP
2,713,306A$83.0m7.53%0.01%
0.55%
Commonwealth Superannuation Corporation
2,650,108A$81.0m-2.27%1%
0.48%
BetaShares Capital Limited
2,328,528A$71.2m4.68%0.59%
0.47%
Deka Investment GmbH
2,234,691A$68.3m0.01%0.06%
0.44%
Sarasin & Partners LLP
2,112,176A$64.6m0%0.3%
0.42%
Blaise Mentha
2,000,000A$61.2m0%no data
0.39%
J.P. Morgan Asset Management, Inc.
1,850,196A$56.6m-1.33%0.01%
0.38%
Polly Pty Ltd
1,817,416A$55.6m0%no data
0.34%
Insignia Financial Ltd.
1,615,472A$49.4m3.75%no data
0.33%
Quintal Pty Limited
1,587,908A$48.6m0%no data
0.32%
Evenlode Investment Management Limited
1,553,910A$47.5m0%0.63%
0.3%
Charles Schwab Investment Management, Inc.
1,460,500A$44.7m-5.58%0.01%

Company Information

Sonic Healthcare Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sonic Healthcare Limited
  • Ticker: SHL
  • Exchange: ASX
  • Founded: 1934
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: AU$14.689b
  • Shares outstanding: 480.34m
  • Website: https://www.sonichealthcare.com

Number of Employees


Location

  • Sonic Healthcare Limited
  • Grosvenor Place
  • Level 22
  • Sydney
  • New South Wales
  • 2000
  • Australia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SKHC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SABDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SHLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
SKHH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008
SAB0MUN (Boerse Muenchen)SPONSORED ADRDEEUROct 2008

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.